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Related papers: Measuring Asset Composability as a Proxy for DeFi …

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We present a measurement study on compositions of Decentralized Finance protocols, which aim to disrupt traditional finance and offer services on top of distributed ledgers, such as Ethereum. DeFi compositions may impact the development of…

Cryptography and Security · Computer Science 2022-10-03 Stefan Kitzler , Friedhelm Victor , Pietro Saggese , Bernhard Haslhofer

The rise of Decentralized Finance ("DeFi") on the Ethereum blockchain has enabled the creation of lending platforms, which serve as marketplaces to lend and borrow digital currencies. We first categorize the activity of lending platforms…

Trading and Market Microstructure · Quantitative Finance 2022-06-08 Michael Darlin , Georgios Palaiokrassas , Leandros Tassiulas

Ethereum and its standardized token interface have formed decentralized finance (DeFi), an open financial system based on blockchain smart contracts. The DeFi ecosystem has become richer with the introduction of DeFi composability projects,…

Computer Science and Game Theory · Computer Science 2022-12-05 HyoungSung Kim , Hyun-Sik Kim , Yong-Suk Park

Decentralized finance (DeFi) has become one of the most successful applications of blockchain and smart contracts. The DeFi ecosystem enables a wide range of crypto-financial activities, while the underlying smart contracts often contain…

Cryptography and Security · Computer Science 2021-04-20 Palina Tolmach , Yi Li , Shang-Wei Lin , Yang Liu

Decentralized finance (DeFi) in Ethereum is a financial ecosystem built on the blockchain that has locked over 200 billion USD until April 2022. All transaction information is transparent and open when transacting through the DeFi protocol,…

Cryptography and Security · Computer Science 2022-05-20 Wenkai Li , Jiuyang Bu , Xiaoqi Li , Xianyi Chen

Financial speculators often seek to increase their potential gains with leverage. Debt is a popular form of leverage, and with over 39.88B USD of total value locked (TVL), the Decentralized Finance (DeFi) lending markets are thriving.…

General Finance · Quantitative Finance 2021-10-04 Kaihua Qin , Liyi Zhou , Pablo Gamito , Philipp Jovanovic , Arthur Gervais

Many classical blockchains are known to have an embarrassingly low transaction throughput, down to Bitcoin's notorious seven transactions per second limit.Various proposals and implementations for increasing throughput emerged in the first…

Cryptography and Security · Computer Science 2023-03-08 Lioba Heimbach , Quentin Kniep , Yann Vonlanthen , Roger Wattenhofer

Lending protocols in decentralized finance enable the permissionless exchange of capital from lenders to borrowers without relying on a trusted third party for clearing or market-making. Interest rates are set by the supply and demand of…

General Finance · Quantitative Finance 2023-08-17 Lioba Heimbach , Eric Schertenleib , Roger Wattenhofer

Decentralized Finance (DeFi) applications introduce novel financial instruments replicating and extending traditional ones through blockchain-based smart contracts. Among these applications, DeFi derivatives protocols enable the creation…

Computer Science and Game Theory · Computer Science 2026-05-05 Luca Pennella , Pietro Saggese , Fabio Pinelli , Letterio Galletta

Since the inception of permissionless blockchains with Bitcoin in 2008, it became apparent that their most well-suited use case is related to making the financial system and its advantages available to everyone seamlessly without depending…

General Finance · Quantitative Finance 2023-06-16 Georgios Palaiokrassas , Sandro Scherrers , Iason Ofeidis , Leandros Tassiulas

Decentralized Finance (DeFi) is a system of financial products and services built and delivered through smart contracts on various blockchains. In the past year, DeFi has gained popularity and market capitalization. However, it has also…

Machine Learning · Computer Science 2023-05-29 Arianna Trozze , Bennett Kleinberg , Toby Davies

Fraud across the decentralized finance (DeFi) ecosystem is growing, with victims losing billions to DeFi scams every year. However, there is a disconnect between the reported value of these scams and associated legal prosecutions. We use…

Cryptography and Security · Computer Science 2023-05-29 Arianna Trozze , Toby Davies , Bennett Kleinberg

Decentralized finance (DeFi) lacks centralized oversight, often resulting in heightened volatility. In contrast, centralized finance (CeFi) offers a more stable environment with institutional safeguards. Institutional backing can play a…

Computational Finance · Quantitative Finance 2025-12-23 Ihlas Sovbetov

Cryptocurrency has seen an explosive growth in recent years, thanks to the evolvement of blockchain technology and its economic ecosystem. Besides Bitcoin, thousands of cryptocurrencies have been distributed on blockchains, while hundreds…

Cryptography and Security · Computer Science 2020-06-12 Ru Ji , Ningyu He , Lei Wu , Haoyu Wang , Guangdong Bai , Yao Guo

Blockchain is a technology that is often used to share data and assets. However, in the decentralized ecosystem, blockchain-based systems can be utilized to share information and assets without the traditional barriers associated with solo…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-04-23 Viktor Valaštín , Roman Bitarovský , Kristián Košťál , Ivan Kotuliak

Synthetic assets are decentralized finance (DeFi) analogues of derivatives in the traditional finance (TradFi) world - financial arrangements which derive value from and are directly pegged to fluctuations in the value of an underlying…

General Finance · Quantitative Finance 2022-09-22 Abrar Rahman , Victor Shi , Matthew Ding , Elliot Choi

Currently cryptocurrencies and Decentralized Finance (DeFi), which enable financial services on public blockchains, represents a new growing trend in finance. In contrast to financial markets, ruled by traditional corporations, DeFi is…

Social and Information Networks · Computer Science 2024-01-04 Mar Grande , Florentino Borondo , Javier Borondo

The decentralized and trustless nature of cryptocurrencies and blockchain technology leads to a shift in the digital world. The possibility to execute small programs, called smart contracts, on cryptocurrencies like Ethereum opened doors to…

Cryptography and Security · Computer Science 2021-01-15 Hendrik Amler , Lisa Eckey , Sebastian Faust , Marcel Kaiser , Philipp Sandner , Benjamin Schlosser

Decentralized finance (DeFi) has the potential to disrupt centralized finance by validating peer-to-peer transactions through tamper-proof smart contracts, thus significantly lowering the transaction cost charged by financial…

General Economics · Economics 2023-12-04 Ziqiao Ao , Lin William Cong , Gergely Horvath , Luyao Zhang

Decentralized Finance (DeFi) on Ethereum has undergone significant transformations since its emergence during the DeFi summer of 2020. With the introduction of Proof of Stake (PoS) and Proposer-Builder Separation (PBS), the transaction…

General Economics · Economics 2025-05-27 Paul Janicot , Alex Vinyas
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